Chapter 8 - Quality

ISO defines quality as "degree to which a set of inherent characteristics fulfills requirements"

Types of requirments:

Customer expectations - stated or implied values

Compliance or regulatory rules - obligatory

Brand expectations - in-house leadership; typically stated

Critical to Quality (CTQ) Characteristics

factors or parameters that are major drivers of quality within organization or process. Can be measured and provide information about whether customer is going to be satisfied.

Critical to Customer (CTC) Characteristics - closely related but, not the same

something can be a CTQ without being CTC directly. CTQ's are internal concerns and drive CTC's

lets team create the most improvement possible with the time, money and people resources available.

lets organization stay on top of quality

CTQ Tree

Customer Need - identify customer need through feedback, SMEs or data collection

Driver - transition point between customer needs and requirements; must be present to meet customer need

Requirement - detailed breakdown regarding CTQ; measurable and can lead you to understand whether drivers are performing appropriately so customer needs are met.

Cost of Poor Quality (CoQ)

External Failures - directly related to customer satisfaction; delivered products. Revenue losses due to reduction in sales

Internal Failures - when product and services don't conform to requirements set by company; handled by scrapping, redoing or repairing work.

Calculating the Cost or Poor Quality (CoPQ)

shows leaders how financial needs are related to the need for quality improvements

CoPQ = External Failure Costs + Internal Failure Costs

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The Cost of Quality (CoQ) = the cost of poor quality + the cost of good quality

Costs of conformity

Prevention Costs - any activity meant to stop an error or defect from occurring.

Appraisal Costs - any activity meant to ensure high levels of quality across a process or organization

CoQ = CoPQ+ Prevention Costs + Appraisal Costs

CoQ & 6S - because quality is inherent in the process, doing things right the first time - the cost of quality goes down while quality goes up.

Manages Cost of Quality - 6S works to build quality into every process and build failure stop-points into process

Once failure costs are reduced, teams can turn to appraisal and prevention costs

Identify and remove muda from prevention and appraisal costs

Quality is critical to success